Alternative financing for infrastructure development

Governments are attempting to use increased infrastructure spending as a tactic for economic stimulus

Tightened credit markets are posing an obstacle to raising debt finance for infrastructure delivery models – public or private – that depend on high levels of up-front capital repaid over the long term through user fees or general taxation

Government balance sheets are constrained, making it more difficult to fund infrastructure projects.

This paper discusses these trends and the impact of each on infrastructure funding/finance, particularly with respect to the prospects for public-private partnerships (PPPs).

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